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Business Description

Harcourts Pacific LLC haS been organized as a limited liability company in the State of California, effective June 7, ,2010. Our principal place of business is27372 Aliso Creek Road, Suite 100, Aliso Viejo, California 92656, Harcourts is in the business of offering and selling residential real estate brokerage franchises in California, Hawaii, and Nevada. These real estate brokerage franchises operate under the, Harcourts brand.

Prior Experience

Harcourts is owned by HarCourts Internationa! USA, Inc., whose principal place of business is located at: 27372 Aliso Creek Road, Suite 100, Aliso Viejo, California 92656. Harcourts USA; Inc. was formed as a California corporation, incorporated on June 23, 2010. Harcourts International USA, Inc. has not nor does it currently offer franchises nor operate real estate brokerageoffices. The real estate brokerage business is a competitive business. There are many factors that go into the success of any business, which include but are not lifnited to, the market and your management abilities. Currently, due to market conditions, there may be large amounts of unsold home inventory, fierce competition for real estate agents by other brokerages, and decreasing pressure On home prices. YoU should besaware of thecyclic nature of the real estate industry, Harcourts cannot,guaranty you, success, but offers you a wide variety of marketing and promotional materials, as well as training and technology to assist in positioning you to Operate your real estate; brokerage office as effectively as possible. While Harcourts has been selling franchises since 2010 in California, Hawaii and Nevada, Its affiliates have done so since April of 1989

Business Offered

Harcourts real estate brokerages are fullyintegrated real estate offices, focusing Upon technology, traihihg, marketing, and communication. The unique aspects of Harcourts real estate brokerage offices include the nonexclusive Use of a wofidwide brand, proprietary marketing and promotional materials, a training, program offered through Harcourts Academy (training center), and a global referral'system., The real estate brokerage business is a competitive business. There are many factors that go into the success of any business, which include but are not lifnited to, the market and your management abilities. Currently, due to market conditions, there may be large amounts of unsold home inventory, fierce competition for real estate agents by other brokerages, and decreasing pressure On home prices. YoU should besaware of thecyclic nature of the real estate industry, Harcourts cannot,guaranty you, success, but offers you a wide variety of marketing and promotional materials, as well as training and technology to assist in positioning you to Operate your real estate; brokerage office as effectively as possible. While Harcourts has been selling franchises since 2010 in California, Hawaii and Nevada, Its affiliates have done so since April of 1989

Initial Fees

There is no application fee for applying to become a franchisee. If approved, the initial franchise fee for the first franchise is $25,000.00. The fee for a second franchise is $7,500.00, and the fbe for the third or more franchises is$2,500.00. in addition, if you are a franchisee and you request to open a Satellite Office, you must pay a fee of $1,000:00 for such office, if Harcourts approves the request

Financing

We do not offer any direct or indirect financing, We do not guarantee your note, lease or obligations.

Franchisee Revenue and Profit

The FTCs Franchise Rule permits a franchisor to provide information about the actual or potential financial performance of its franchised and/or franchisor-owned outlets, if there is a reasonable basis for the;information, and if the information is included in the disclosure document, Financial performance information that differs from that: included in Item 19 may be given only if: (11) a franchisor provides the actual records Of an existing outlet you are considering buying; or (2) a franchisor supplements the information provided in this Item 19. for example, by providing information about possible performance at a particular loeation or under particular circumstances. Weido.,not make any representations about a franchisee's future'financial performance or the past financial performance of company-owned or franchised outlets. We also do not authorize our employees or representatives to make any such representations either orally or in, writing. If you are purchasing an existing dutlet, however, we may provide you with the actual records of that outlet. If you receive any other financial performance information or projections of your future income, you should report it to the franchisor's management by contacting Benjaimih Brady at ,27372 Alisd Creek Road, Suite 100, Aliso Viejo, CA 92656, Tel: 949 632-8995, the Federal Trade Commission, and the appropriate state regulatory agencies.